---

Brent crude oil rose to around $108 a barrel on Tuesday as a slightly weaker dollar and Middle East unrest supported prices, but stalled fiscal talks in the United States capped gains.Brent crude was up 64 cents to $107.94 a barrel by 0929 GMT. U.S. crude was at $85.84, up 28 cents. The dollar index edged down 0.1 percent on prospects of more monetary stimulus from the U.S. Federal Reserve. Continued unrest in Egypt, fighting in Syria, pressure on Iran to stop its nuclear programme and the killing of a domestic senior intelligence officer in Yemen have lent support to oil prices.

Just like at the end of last week, oil prices consolidated sideways in technically dominated trading before breaching resistances at ICE around noon. After better than expected U.S. job market data on Friday, positive Chinese economic data also spurred market sentiment. Since the resistance at 86.65 dollars (WTI) remained strong despite several breaches and also because there were no more encouraging indicators, there was not much room for upward movement and oil prices at ICE and NYMEX gave off all profits. Despite a rising euro vs the dollar, traders took profits at NYMEX floor trading. Automatic selling orders were triggered when the ICE G.Oil contract breached its hitherto strong support. WTI also breached its support at 85.80 dollars but made some losses at the close of trading despite a slight upward correction and fell to a one-month low.

ICE Gasoil contract for December delivery settled at 903.75 dollars on Monday. This was 2.20 dollars below Friday's settlement. With some 45,200 deals the traded volume was below average.

Little has changed in the technical view this morning. But the stochastic indicator for WTI is not bearish anymore because the lines converge while for G.Oil and Brent the lines touch at the oversold level. Brent slightly touches the 30% line. After a breach, selling signals could be triggered since, from a technical perspective, an upward correction is due. Technical analysts take a rather neutral stand this morning. With many important fundamental events this week, it would require strong bullish signals for such a correction to be triggered.

U.S.

Nymex Access neutral: After oil prices fell in Asian trading, they are now beginning to recover. The traded volume at NYMEX is about average at this time of day. Traders are waiting for the European markets to open and for signals from forex trading. Along with the release of important economic data from the euro zone and the USA, market participants eye thie Fed's last FOMC meeting of this year.

Houston (ex-wharf indications 10-12)
380cst $601
180cst $700
MGO $988

New Orleans (ex-wharf indications 10-12)
380cst $622
180cst $657
MGO $993

Singapore (correct as of 1430hrs LT - delivered indications)

Crude with WTI -$0.48. Singapore paper is bullish with +$3.00 for 180cst and +$2.95 for 380cst for Nov, and for Dec,180 cst +$1.25 and 380cst +$1.25. With MGO contracts Nov -$0.43 and Dec-$0.47. The cargo market is bearish with 180 cst -$3.80 380cst -$3.72 and MGO -$0.24.

The Singapore markets inched up more than +$1.0 during the morning Platts window yesterday. Although current supply seems to outstrip demand, market is expecting to see fresh demand coming regionally as winter season approaches. The delivered bunker premiums were lifted higher ranging $4.0-5.0 above cargo prices. This morning the markets are trading slightly higher.

High premiums for prompt deliveries.
380 cst $600
180 cst $610
MDO $910

ARA (Amsterdam - Rotterdam - Antwerp)

LSFO loadings are taken up to 4 days in Antwerp. HSFO there are no spot-avails. Beside the existing contracts of the suppliers, there are no load possibilities in Antwerp or Flushing. Both influences the Rotterdam hub with regards to the loading capacity. A lot of waitingtime is reported in some of the refineries or storages. Those where waitingtime is taken to the minimum, high premiums are noted. Therefore, for prompt enquiries, a bigger premium is to be expected.

Indications for delivered bunkers:
380cst : $ 577
(1.0 %) :$ 609
180cst: $ 607
(1.0 %):$ 639
MGO 0.1%S: $ 894